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Clover Technologies Group

Clover Technologies Group



Clover Recycled and Remanufactured Ink and Toner Cartridges

Clover Offers Environmental Solutions of Ink & Toner Cartridges that are Remanufactured or Recycled. Clover offers vertically-integrated, closed-loop environmental solutions. The proprietary closed-loop environmental process ensures that every component of the empty cartridges collected is either remanufactured or recycled. Green Is Here to Stay...if Clover has Anything to Say About It. The sustainable living movement has gone mainstream. There has never been a better time to promote the environmental benefits of remanufactured imaging supplies as an alternative to wasteful OEM cartridges. Clover's position as the industry leader in sustainable environmental solutions makes it easy to "go green."

How to Go Green...with Clover

Education on the positive environmental impact of remanufactured imaging supplies. In addition to emphasizing the cost savings and quality of remanufactured imaging supplies, it's important to raise awareness of the positive environmental impact that remanufactured imaging supplies have on our planet. Simply put, remanufacturing is the most environmentally responsible choice. When a cartridge is remanufactured, it is reused. Besides reducing consumption, reuse is the highest form of environmental responsibility. It is superior to recycling in that it doesn't use non-renewable resources to breakdown plastic and metal.

Compelling statistics that consumers may not be aware of include:

* Each discarded laser cartridge adds approximately 2.5 pounds of metal and plastic waste to our landfills - waste that will take as long as 1,000 years to decompose. * The plastic in each new laser toner cartridge takes 3.5 quarts of oil to produce while each new inkjet cartridge requires 2.5 ounces of oil.3 * CO2 emissions during the manufacturing of a new cartridge are almost 2.5 times the emissions produced during remanufacturing.4

Industry-Leading Environmental Practices

Clover offers vertically-integrated, closed-loop environmental solutions. The proprietary closed-loop environmental process ensures that every component of the empty cartridges collected is either remanufactured or recycled. Clover is the only remanufacturer in the industry to have its own grinding facility, where unusable cartridge components are ground and recycled into new plastic products to complete this proprietary closed-loop process. All of Clover's products use SFI (Sustainable Forestry Initiative) certified packaging and contain a recycling solution in every box.

Cover Technologies Group provides closed-loop, vertically integrated environmental solutions for imaging supplies and is the leading remanufacturer and collector of ink and toner cartridges. Clover also offers comprehensive recycling solutions for printer components and small electronics including cell phones. Marketed under a variety of private label brands, the complete line of Clover‚ôs quality imaging supplies is available through industry leading resellers and wholesalers. Clover Environmental Solutions (CES) is the heart of Clover‚ôs sustainability efforts. CES is the division of Clover responsible for procuring empty cartridges that sustain our operations, as well as cell phones, other small electronics, and printer components. These collections enable Clover to manufacture quality imaging products while minimizing reliance on virgin non-renewable resources. Clover‚ôs collection programs provide our customers the opportunity to further their environmental stewardship. CES is dedicated to providing our customers with innovative recycling solutions designed to protect the environment. CES provides reuse and recycling solutions to a broad customer base throughout the world. The millions of units collected annually are remanufactured, remarketed or recycled through Clover and our network of strategic partners. The innovative recycling solutions we bring to market are created and C implemented with an understanding of the impact our company has on the environment. It is our customized and targeted collection programs combined with our industry-leading technology and processes that differentiate CES in the marketplace. The capacity of CES to provide diversified environmental solutions grew this year when Clover acquired Environmental Reclamation Services (ERS) headquartered in Erie, Pennsylvania, enhancing Clover‚ôs capacity to collect and process empty cartridges, small electronics, and printer components. Clover‚ôs capacity to handle those products was fortified by the additional acquisitions of West Point and Image1 who help manage Clover‚ôs toner cartridges and printer parts, respectively. The process flow chart below shows how Clover‚ôs collections are managed by Clover and its subsidiaries. Used Ink and Toner Cartridges, Small Electronics, and Printer Components Processed in Ithaca, MI Oglesby, IL Erie, PA or Mexicali, Mexico YES NO Is it feasible for Clover to reuse this material? Can the product otherwise be remanufactured? Remarketed for Remanufacture Sent for WTE processing when not feasible to recycle Recycled in-house and/or by qualified downstream vendors into various products including new compatible toner cartridges Image1 for Remanufacture and Resale Ithaca, MI for Remanufacture into New Finished Goods Mexicali or West Point for Remanufacture into New Finished Goods Toner Cartridge Ink Cartridge Printer Components istently meet or exceed the expectations of our customers by ensuring superior product quality and service, by preventing pollution from Company operations, and through compliance with applicable legal requirements and with other requirements relating to Company environmental aspects to which the Company subscribes. Continual improvement of this policy is achieved through a combination of rigorous process management, employee empowerment, and accountability for achieving all corporate goals and objectives. ENVIRONMENTAL POLICY KEY IMPACTS DOING MORE WITH LESS he notion of sustainable development was introduced to the world in a report to the United NationsiV in 1987. The report was written in response to a deep concern over both the speed and apparent irreversibility with which the earth‚ôs natural resources were being squandered. The report was written with the objective to raise the levels of understanding and commitment to action of individuals and businesses and was hailed as the most important document on the future of the world when it was released.v The principles that it established on sustainability still resonate, especially in the ever progressing electronics industry. Those principles were used as a roadmap in the creation of this report and excerpts from Our Common Future are included herein to provide direction, both through this report and in our sustainability efforts. This year, to better the sustainability of Clover‚ôs vertically integrated closed loop solution for the products we manufacture, Clover had two life cycle assessments (LCA) conducted on two of our most popular toner cartridges. In these assessments, the cartridge life cycle was broken into five stages: cartridge materials, finished cartridge packaging, manufacturing energy, transportation to the customer, and cartridge end-of-life. The following discussion is also presented in that format. Industries and industrial operations should be encouraged that are more efficient in terms of resource use, that generate less pollution and waste, that are based on the use of renewable rather than non renewable resources, and that minimize irreversible adverse impacts on human health and the environment. iii T SUSTAINABLE COMPOSITION he results of the LCA showed that the aspect with the greatest weight on Clover‚ôs overall environmental impact was the materials required to manufacture the cartridge. When normalized as a percentage of the equivalent OEM total, which contributed over 78 percent, materials of the tested Clover cartridge contributed 32 percent, or over 46 percent less than the OEM, to the cartridge‚ôs environmental impact.vii Materials have the greatest environmental impact on the cartridge‚ôs life cycle, making especially significant the materials Clover uses to build its finished goods.viii In 2010, 88 percent of Clover‚ôs collections were reused.ix This breaks down to 29.9 million ink cartridges, 9.1 million toner cartridges, and 23,000 printer components. These reused collections contained approximately 11.9 million pounds of plastic and nearly 9 million pounds of metals. By manufacturing new products from these materials instead of virgin materials, the total renewable and nonrenewable energy needed during the life cycle of the materials can be conserved. The energy conserved amounts to over 803 billion Btus, which is equivalent to 138,406 barrels of crude oil, enough energy to power 18,420 single family homes for one entire year.xii Sustainable development involves more than growth. It requires a change in the content of growth, to make it less material- and energyintensive and more equitable in its impact. vi The post consumer recycled content by weight of the average empty ink cartridge manufactured by Clover is 97% T o ensure that the quality of Clover‚ôs manufactured products is as good as or better than that of their OEM equivalents, not all parts of a collected cartridge can be reused. The post consumer recycled content by weight of the average empty ink cartridge manufactured by Clover is 97 percent. The post consumer recycled content by weight of the average empty toner cartridge manufactured by Clover is 90 percent. By mining these materials from the waste stream instead of from the earth, the nonrenewable resources with which these cartridge materials are created can be conserved. The reuse of these materials prevents as much carbon dioxide, the predominant greenhouse gas, as 6,364 acres of pine forest would capture in one year.xiii In addition, the LCA conducted on Clover‚ôs toner cartridge showed that such reuse had an environmental impact on natural resources that was 51% less than that of the OEM.  lover has taken great strides in 2010 towards more sustainable packaging. This past year, Clover introduced two new packing inserts, one made from used plastic and the other from used paper products. Both new inserts are used for stability and are substitutes for plastic inserts not made from recycled materials. Both new inserts have 100 percent post-consumer content, and together, are used in the packaging of seven percent of our finished goods. The great majorityxv of our finished goods requiring inserts now rely on corrugate as insulation during their travels to the customer. Over 81 percent now use corrugate inserts, approximately 70 percent of which have 100 percent recycled content.xvi The life cycle analyses that contrasted Clover‚ôs cartridges to the OEM found that packaging was the one aspect of the Clover cartridge life cycle that carried a greater environmental burden than did that of the equivalent OEM. This higher environmental burden is the intentional result of Clover designing its packaging so that the empty cartridge can be safely returned to Clover. By using a relatively heavy corrugate in construction of our robust packaging, Clover is able to reclaim the cartridges it manufactures to close the loop and more greatly enhance the environmental benefit of the remanufactured cartridge. Industry and its products have an impact on the natural resource base‚¶These impacts may be positive, enhancing the quality of a resource or extending its uses. Or they may be negative, as a result of process and product pollution and of depletion or degradation of resources. xiv NEW INSERTS HAVE 100% POST- CONSUMER CONTENT C lthough the normalized contribution of manufacturing energy to the environmental impact of the LCA was minimal at less than two percent, the energy needed throughout the life cycle of Clover‚ôs products is significant because it is a proxy for green-house gas emissions and other environmental impacts caused by energy consumption. The life cycle energy demand of the representative toner cartridge studied in the LCA was 48 percent less than that of the equivalent OEM.xviii The energy available to Clover‚ôs facilities is generated primarily from nonrenewable sources. To encourage the growth and availability of renewable energy and to neutralize part of our environmental impact in 2010, Clover offset more than 100 percent of the electricity consumed by its facilities in North America throughout the entirety of the previous year. This offset was achieved by the purchase of renewable energy credits that support electricity production by clean and renewable wind. NECESSARY FUEL FOR OUR SUSTAINABILITY Energy is necessary for daily survival. Future development crucially depends on its long-term availability in increasing quantities from sources that are dependable, safe, and environmentally sound. At present, no single source or mix of sources is at hand to meet this future need. xvii A DRIVING TO ENHANCE OUR ENVIRONMENT o minimize the environmental impact of the transport of Clover‚ôs products, Clover established a new processing facility by its acquisition of ERS in Erie, Pennsylvania. The processing of collected materials at this new location will prevent many collections from traveling to Clover‚ôs primary processing facility in Mexicali, which is nearly 2,400 miles away. In the 49 days that remained in 2010, after the acquisition of ERS, nearly 9 percent of the units collected by Clover were processed at ERS. Industry extracts materials from the natural resource base and inserts both products and pollution into the human environment. It has the power to enhance or degrade the environment; it invariably does both. xix ZERO-WASTETO- LANDFILL POLICY T CLOVER COLLECTED OVER 44.36 MILLION INK AND TONER CARTRIDGES 93,000 CELL PHONES, SMALL ELECTRONICS, AND PRINTER COMPONENTS AND OVER PROGRESSING SUSTAINABILITY AT END-OF-LIFE. Pollution is not the synonym of progress and therefore the time has come for new development concepts to come up. Pollution should not be a synonym of progress because we know that pollution is controlled and when you do not control pollution you are transferring this pollution to the community of the whole. xx Clover prevented 24.7 million pounds of plastics, metals, and electronic components from reaching land lls. lover operates under a Zero-Waste-to-Landfill Policy to ensure that materials collected for remanufacturing will not go to landfill. Pursuant to this policy, Clover evaluates every empty cartridge, small electronic or printer component that is received; first for remanufacturing and second for material recovery through recycling. Collections that can be remanufactured by Clover will be disassembled so that as many components as possible can be reused. If these collected materials cannot be remanufactured, they will not be sent to landfill. If recycling is not feasible, the collected materials will be sent to our waste to energy partner to be used as a renewable power source.xxi If collected materials must be recycled, useful products are produced that substitute for virgin resources. In 2010, Clover collected over 44.36 million ink and toner cartridges, and over 93,000 cell phones, small electronics and printer components, which means nearly 24.7 million pounds of plastics, metals, and electronic components were prevented from reaching landfills. Of these collections, 12 percent of Clover‚ôs collections were recycled and one percent went for waste-to-energy conversion. Clover‚ôs collections that were recycled prevented the same amount of carbon dioxide than nearly 78,000 new pine trees grown for 10 years.xxii C BROADENING OUR PERSPECTIVE lover will become certified under the Responsible Recycling (R2) practices in 2011. With this voluntary commitment to the R2 practices, Clover will enhance the transparency of its environmental practices beyond, according to the EPA, what it is able to legally require.xxiv Adherence to the R2 practices will guarantee that certain materials collected by Clover that warrant greater care due to their potential adverse environmental effects are managed by capable and responsible downstream vendors. This report has demonstrated our continued dedication to advancing our sustainability initiatives by evolving our business practices and processes. With your continued support of Clover Technologies Group, we will continually improve our efforts towards sustainable development. Please contact us to share your thoughts about our sustainability efforts so we can continue to grow together, responsibly. Industry's response to pollution and resource degradation has not been and should not be limited to compliance with regulations. It should accept a broad sense of social responsibility and ensure an awareness of environmental considerations at all levels. xxiii CLOVER WILL BECOME UNDER THE (R2) PRACTICES CERTIFIED RESPONSIBLE RECYCLING C CERTIFICATIONS & PARTNERSHIPS ISO 14001 Clover‚ôs collection, processing, warehousing, and distribution of cell phones, inkjet and laser cartridges are ISO 14001 certified. ISO 14001 is the international specification for an environmental management system (EMS). ISO 9001 The design, remanufacturing, and distribution of inkjet and laser cartridges is ISO 9001 certified. ISO 9001 is a family of standards and guidelines for quality in the manufacturing and service industries from the International Organization for Standardization (ISO). ISO certification ensures that the processes that develop the product are documented and performed in a quality manner. US EPA WasteWise WasteWise is the country's first national voluntary solid waste reduction program. WasteWise encourages organizations to reduce municipal solid waste through waste prevention, recycling, and buying or manufacturing recycled products. Through this partnership, Clover has established the goal to reduce its waste generation by 10-percent in one year. US EPA Green Power Partner and Leadership Club Green Power Partnership is a voluntary program that supports the organizational procurement of green power, which is electricity produced from a subset of renewable resources, such as solar, wind, geothermal, biomass, and low-impact hydro. Because Clover substantially exceeds EPA‚ôs minimum purchase requirements for an organization-wide commitment by displacing 100-percent of its US facility‚ôs electricity consumption, it has become a member of the Leadership Club. 3Degrees 3Degrees enables businesses and individuals to fund clean energy and carbon reduction projects. It does this by originating and providing certificates and carbon offsets from around the world to help their partners reduce their environmental footprint. Clover purchases enough renewable energy credits from 3Degrees to displace the impact of electricity consumption of all US Clover facilities. Sustainable Forestry Initiative All vendors providing final exterior packaging for Clover‚ôs finished inkjet and laser cartridges are certified by the SFI program, which is based on the premise that responsible environmental behavior and sound business decisions can co-exist. Each of these partners has been SFI-certified to practice sustainable forestry on all lands it manages. Forest Stewardship Council All vendors providing final exterior packaging for Clover‚ôs finished inkjet and laser cartridges are also certified by the FSC program. The FSC label provides a credible link between responsible production and consumption of forest products, enabling consumers and businesses to make purchasing decisions that benefit people and the environment as well as providing ongoing business value. Illinois Recycling Association Member Through this membership, Clover encourages the responsible use of resources and works to find profitable and environmentally innovative solutions to waste reduction. i Defining sustainable development, Our Common Future, The World Commission on Environment and Development, Oxford University Press, 1987, p. 43. ii Life Cycle Assessment Final Report: Energy and Environmental Impact Comparison of the Hewlett Packard LaserJet Q2612A (12A) Toner Cartridge and the Sustainable Earth by Staples Remanufactured Counterpart, Rochester Institute of Technology, 17Dec10 (12A LCA), and Life Cycle Assessment Results:Energy and Environmental Impact Comparison of the Hewlett Packard LaserJet Q1338A (38A) toner cartridge and the Sustainable Earth by Staples remanufactured counterpart, Rochester Institute of Technology, 22Dec10 (38A LCA). iii Our Common Future, 1987, p. 213 iv Referring to Our Common Future, 1987 v Our Common Future, 1987, back cover vi Our Common Future, 1987, p. 54 vii 12A LCA, p. 4. viii 12A LCA, p. 4. ix This number includes all collected materials not recycled. x Cumulative energy demand derived from 12A LCA, Appendices C and D. xi LCA, citing U.S. Energy Information Administration, Energy Units and Calculators Explained, http://tonto.eia.doe.gov/energyexplained/ index.cfm?page=about_energy_conversion_calculator, accessed Aug 16, 2010. 6.3 megajoules = 5971 Btu. 1 kWh = 3,412 Btu. 1 barrel of crude oil = 5,800,000 Btu. 1 therm natural gas = 100,000 Btu xii LCA, citing EIA (2008). 2005 Residential Energy Consumption Survey. Table US 3, Total Consumption by Fuels Used, 2005, Physical Units, In 2005, there were 111.1 million homes in the United States; of those, 72.1 million were single family detached homes and 7.6 million were single family attached homes for a total 79.7 million single family homes nationally. On average, each single family home consumed 12,773 kWh of delivered electricity. A single family home is defined in the U.S. Department of Energy‚ôs Residential Energy Consumption Survey as follows: A housing unit, detached or attached, that provides living space for one home or family. Attached houses are considered single family houses as long as they are not divided into more than one housing unit and they have independent outside entrance. A single family house is contained within walls extending from the basement (or the ground floor, if there is no basement) to the roof. A mobile home with one or more rooms added is classified as a single family home. Townhouses, rowhouses, and duplexes are considered single family attached housing units, as long as there is no home living above another one within the walls extending from the basement to the roof to separate the units. xiii EPA‚ôs Greenhouse Gas Equivalencies Calculator used to find that 29522.58 metric tons of carbon dioxide equivalent (MTCO2E) has the equivalency results as that many acres of pine or fir forests. Growing forests store carbon. Through the process of photosynthesis, trees remove CO2 from the atmosphere and store it as cellulose, lignin, and other compounds. The rate of accumulation is equal to growth minus removals (i.e., harvest for the production of paper and wood) minus decomposition. In most U.S. forests, growth exceeds removals and decomposition, so there has been an overall increase in the amount of carbon stored nationally. http://www.epa.gov/cleanenergy/energy-resources/calculator.html, last access on January 12, 2011. xiv Our Common Future, 1987, p. 208. xv Corrugate:81.5%, Molded pulp: 6.9%, Plastic air cells: 5.7%, Foam-in-place: 5.6%, Molded recycled plastic: 0.3% xvi The other approximately 30 percent contains 37 percent recycled content. xvii Our Common Future, 1987, p. 168. xviii 12A LCA, p. 4. xix Our Common Future, 1987, p. 206. xx Our Common Future, 1987, p. 215. xxi US EPA on WTE: Because no new fuel sources are used other than the waste that would otherwise be sent to landfills, MSW is often considered a renewable power source. http://www.epa.gov/cleanenergy/energy-and-you/affect/municipal-sw.html, last accessed on January 11, 2011. xxii EPA‚ôs Greenhouse Gas Equivalencies Calculator used to find that 3040.17 metric tons of carbon dioxide equivalent (MTCO2E) has the equivalency results as that many medium growth coniferous trees, planted in an urban setting and allowed to grow for 10 years. http://www.epa.gov/cleanenergy/energy-resources/calculator.html last accessed on January 12, 2011. xxiii Our Common Future, 1987, p. 222. xxiv Electronic Waste: Considerations for Promoting Environmentally Sound Reuse and Recycling, United States Government Accountability Office, Report to the Chairman, Committee on Science and Technology, House of Representatives, July 2010. w w w. c l o v e r t e c h . c o m Copyright 2011 28910B Innovative Environmental Solutions

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